Deutsche Asset & Wealth Management (Deutsche AWM) today reported that its exchange-traded funds (ETF) replication method has generated an increased market share in Europe for the company as well as its position as second largest ETF provider on the continent.

A year ago, investor demand prompted Deutsche AWM to make changes to its ETF platform, from indirect (synthetic) replication to direct (physical) replication. Since then, the company has recorded a total inflow of over $10 billion in ETFs, including more than $5 billion in the last six months alone. In tandem, the market share in Europe rose by 0.5% to 12.4% this year.

"For investors, it is interesting to now have a choice between at least two providers operating internationally for many physical ETFs. For them, it is an advantage to have a less concentrated offer than before," commented Simon Klein, Head of  ETP Distribution & Institutional Mandates, EMEA and Asia, at Deutsche AWM. Nine new sales staff were recruited to the team of Deutsche AWM since 2014, for a continuous improvement in the management of clients and services in Europe and Asia.
 
In addition to changing the replication method, Deutsche AWM claimed it took a number of measures in 2014 to boost distribution of its own ETF. This fund provider was for example the first ETF provider in Europe to introduce a range of "Core ETF". These ETFs have very competitive detention costs and are subject to known indices such as the DAX and EuroStoxx 50. The Core ETF range includes ETF Securities exposed to eight indexes covering Europe, the United States and Japan and to one international index. The annual fixed costs for Core ETF are between 0.07% and 0.20%.

Since 2014, the ETF platform has also reportedly introduced a number of innovations, including new ETFs that provide investors with an entry point to markets that were previously inaccessible. One example was cited as the first ETF linked to the Barclays Global Aggregate Bond Index, the index for leading international bonds and ETFs on high-yield corporate bonds with a short duration. Of the 15 new ETFs that attracted the largest flows worldwide in 2014, five were from Deutsche AWM.